Wednesday, July 06, 2011
Union Drilling Inc.
Union Drilling has entered into contracts to purchase two new drilling rigs based upon executed three-year contracts with a long-standing customer. The 1,500 horsepower AC electric drilling rigs, designed for pad drilling and efficient rig moves, have an aggregate cost of approximately $35 million. Upon completion, which is expected in the first quarter of 2012, the rigs will be deployed to Arkansas for work in the Fayetteville Shale.
Christopher D. Strong, Union Drilling's President and Chief Executive Officer, stated, "This type of investment is exactly what we had in mind when we entered into an expanded revolving credit facility earlier this year. These two new rigs represent an excellent opportunity to generate attractive returns for our shareholders while expanding our relationship with a key customer."
Since January 2011, the Company has added two 1,000 horsepower rigs to its fleet and two more 1,000 horsepower rigs are expected to be completed for operations in the Marcellus Shale by the end of 2011.
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